Taeyoung E&C wins support votes for debt restructuring

[Photo by Yonhap]

South Korean real-estate developer Taeyoung Engineering & Construction Co., which is on the verge of default, won support from creditors in a vote to start debt restructuring talks.

The builder won this support in a vote from 96.1 percent of creditors, according to a statement from its largest creditor Korea Development Bank on Friday.

In response to the voting results, the creditors will conduct due diligence on the developer until April 10th, 2023, then develop a restructuring proposal with a detailed plan on April 11th based on the evaluations of the builder’s capabilities.

The plan includes the self-rescue measures that the developer and its parent Taeyoung Group came up with, debt-restricting plans by financial creditors, and fundraising approaches.

The creditors will set up a special body to develop measures for the builder’s project-financing (PF) projects. The body is expected to push ahead with construction projects already underway in accordance with the due dates.

For projects yet to start construction, the group of PF creditors will review multiple factors associated with the projects, such as feasibility and profitability, to come up with solutions, including contractor replacement and project cancellation.

The creditors called for further cooperation from all stakeholders, including the developer’s employees.